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Zacks Investment Ideas feature highlights: Nasdaq 100 ETF, Nvidia and Arm Holding
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For Immediate Release
Chicago, IL – February 21, 2024 – Today, Zacks Investment Ideas feature highlights Nasdaq 100 ETF (QQQ - Free Report) , Nvidia (NVDA - Free Report) and Arm Holding (ARM - Free Report) .
What's Next for Tech Stocks? 3 Upcoming Catalysts to Watch
Over the past year, the tech-heavy Nasdaq 100 ETF is up a robust 44.38%. The Nasdaq and the rest of the major market indices bottomed in late 2022, against all odds and amidst a cloudy macroeconomic backdrop. In classic form, the market was the master manipulator, bottoming while inflation was at 40-year highs, the Fed was raising rates, and tech stocks had been down-trending for months. The move higher in equities was a great example of how the market tends to discount the future and tends to turn when things look the bleakest.
Fast forward to today’s market, and the environment couldn’t be more different. Inflation has slowed, the AI revolution is in full swing, and investors are overwhelmingly bullish on equities. What’s next for tech stocks? Look to the upcoming catalysts. The following three catalysts will have the biggest impact on tech stocks over the coming weeks:
2/14: Nvidia Earnings
Fellow semiconductor stock Nvidia is the undisputed leader and most significant beneficiary of the AI revolution. NVDA, which has ballooned into the world’s third-largest company, will report earnings Wednesday after the close. The company has delivered positive surprises versus Zacks Consensus Estimates for four straight quarters. Will another earnings surprise drive shares even higher, or is the good news priced in already, leading to a “sell the news” event? Either way, NVDA’s earnings will drive tech stocks in the short term.
2/21: Minutes of Fed’s January FOMC Meeting
An old Wall Street adage warns investors, “Do not fight the Fed!” Liquidity drives markets, and central banks control much of the liquidity through monetary policy. Recently, the odds of an interest rate cut have declined significantly. “Higher rates for longer” would be a potential headwind for tech-focused investors.
3/12: Arm Lock-up Period Expiration
An IPO lockup period is a contractual restriction that prevents company insiders, such as executives and early investors, from selling their shares for a specified duration after the initial public offering IPO (IPO). When the lock-up period expires, these insiders can sell their shares, potentially flooding the market with additional supply. The sudden increase in available shares can create an imbalance between supply and demand, putting downward pressure on the stock price as more shares are offered for sale.
Japanese multinational investment holding company SoftBank Group owns 91% of high-flying semiconductor stock Arm Holding, and only 5 % of the company’s shares are available to the public to trade! With ARM up some 96% since its IPO in September, the lockup expiration date of March 12th is worth watching as it may lead to downward selling pressure on the semiconductor industry as insiders look to cash out their massive gains.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Nasdaq 100 ETF, Nvidia and Arm Holding
For Immediate Release
Chicago, IL – February 21, 2024 – Today, Zacks Investment Ideas feature highlights Nasdaq 100 ETF (QQQ - Free Report) , Nvidia (NVDA - Free Report) and Arm Holding (ARM - Free Report) .
What's Next for Tech Stocks? 3 Upcoming Catalysts to Watch
Over the past year, the tech-heavy Nasdaq 100 ETF is up a robust 44.38%. The Nasdaq and the rest of the major market indices bottomed in late 2022, against all odds and amidst a cloudy macroeconomic backdrop. In classic form, the market was the master manipulator, bottoming while inflation was at 40-year highs, the Fed was raising rates, and tech stocks had been down-trending for months. The move higher in equities was a great example of how the market tends to discount the future and tends to turn when things look the bleakest.
Fast forward to today’s market, and the environment couldn’t be more different. Inflation has slowed, the AI revolution is in full swing, and investors are overwhelmingly bullish on equities. What’s next for tech stocks? Look to the upcoming catalysts. The following three catalysts will have the biggest impact on tech stocks over the coming weeks:
2/14: Nvidia Earnings
Fellow semiconductor stock Nvidia is the undisputed leader and most significant beneficiary of the AI revolution. NVDA, which has ballooned into the world’s third-largest company, will report earnings Wednesday after the close. The company has delivered positive surprises versus Zacks Consensus Estimates for four straight quarters. Will another earnings surprise drive shares even higher, or is the good news priced in already, leading to a “sell the news” event? Either way, NVDA’s earnings will drive tech stocks in the short term.
2/21: Minutes of Fed’s January FOMC Meeting
An old Wall Street adage warns investors, “Do not fight the Fed!” Liquidity drives markets, and central banks control much of the liquidity through monetary policy. Recently, the odds of an interest rate cut have declined significantly. “Higher rates for longer” would be a potential headwind for tech-focused investors.
3/12: Arm Lock-up Period Expiration
An IPO lockup period is a contractual restriction that prevents company insiders, such as executives and early investors, from selling their shares for a specified duration after the initial public offering IPO (IPO). When the lock-up period expires, these insiders can sell their shares, potentially flooding the market with additional supply. The sudden increase in available shares can create an imbalance between supply and demand, putting downward pressure on the stock price as more shares are offered for sale.
Japanese multinational investment holding company SoftBank Group owns 91% of high-flying semiconductor stock Arm Holding, and only 5 % of the company’s shares are available to the public to trade! With ARM up some 96% since its IPO in September, the lockup expiration date of March 12th is worth watching as it may lead to downward selling pressure on the semiconductor industry as insiders look to cash out their massive gains.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.